| What is the Product Life Cycle? | -A model, that describes the Stages that a Product goes through. |
| What are the Uses of using the Product Life Cycle? | -Can see Insight of Future Sales Trend
-Helps with the Market Targeting and Positioning
-Analyses and Manages the Product Portfolio
-Helps to see how long the Product lasts
-Businesses can use the Model, to Prolong any Stages
-Not all Products will Decline; some will have Extension Strategies to gain Sales again |
| What are the Stages called? | -Intro
-Growth
-Maturity
-Decline
[In order] |
| Evaluate the Intro Stage | -Usually Costs High
-Not many Sales
-Negative Cash Flow [sometimes]
-Not huge Distibution
-Lots of Promotional Spending
-Price Skimming OR price Penetration |
| Evaluate the Growth Stage | -Expanding Market
-More Sales
-Becomes Known
-Cash flow becomes Positive
-Market Grows, Profits Rise, New Competitors
-Wider Distribution
-Advertising to continue Awareness |
| Evaluate the Maturity Stage | -Slower Sales and Growth [Competitors enter]
-High Profits for High Market Share
-Cash Flow becomes greatly Positive
-Weak Competitors leave
-Prices and Profits fall
-Advertising to still Remind the Existence
-Promotion now on Product Differentiation
-New Users, Target New Segments, Develop new Uses |
| Evaluate the Decline Stage | -Falling Sales
-Market Saturation
-Decline in Profits and Weaker Cash flow
-Even more Competitors leave
-Products no longer receives Promotion
-The left overs sold at a Reduced Price |
| Why do Some Products reach the Decline Stage | -Technological Advances
-Changes in the Customers Needs and Expectation
-More Competitors
-Can not Innovate the Product |
| What are Extension Strategies? | -A way that Busiensses use to keep the Sales of a Product still high
-Their are Different Ways |
| Name some Extension Strategies | -Advertising; Gain a New Audience to sell to/ Remind the Current Audience its Existence
-Price Reduction; Show its Low Price to attract More Customers
-More Value; eg Phone, more Filters, Convenience
-Try New or Different Markets; Sell in a Different Town, Region, Nation
-New Packaging; Just making it appeal nicely eg Putting Crisps in Boxes |
